Citi to cut less than 300 jobs in Singapore

Citigroup (C.N: Quote, Profile, Research,
Stock Buzz) may cut less than 300 jobs in Singapore, a sign Asia could see much
smaller cuts than other regions as part of the U.S. bank's global restructuring
plan, sources told Reuters on Tuesday.

The job cuts, which will be implemented
soon, are part of plans revealed by Citigroup on Monday to cut 52,000 staff
globally by early next year in a dramatic move to restore the second-biggest
U.S. bank to health.

Citigroup employs about 9,000 people in Singapore and the layoffs account for about 3 percent of its staff, said a source who
declined to be identified because the plans were not public.

"In Singapore, there will be modest
headcount reductions," a bank spokesman said. "Our business in Singapore continues to register robust year-on-year growth and remains a regional center
for management and operations for Citi globally."

Citi recently opened its 20th branch in the
city-state, a growing center for financial services and private banking.

It was unclear how many jobs will be cut in
other parts of Asia. Citi employs 55,000 people in Asia including Japan.

A second source familiar with the plan told
Reuters around 150 job cuts will be at Citi's wealth management unit in Asia
excluding Japan.

The source said over 60 percent of the cuts
will be in Singapore and Hong Kong. Citi's Asian wealth management unit
excluding Japan has 1,200 people.

A Citigroup spokesman in Hong Kong declined
to comment on the numbers but said it expected a reduction in overall headcount
in the region.

"We are repositioning our business to
be more efficient and productive in the current difficult market conditions. As
a result, some jobs will change and others may no longer be necessary,"
the Citigroup spokesman said in a statement.

The job cuts in the wealth management
business is a reversal of a trend seen until last year when rival banks were
furiously poaching private bankers to grow their business in Asia where wealth
was growing at a double-digit pace.

The dramatic plunge of financial markets
has prompted wealthy clients to sell stocks and shun higher-fee products for
the comfort and safety of cash, private bankers and industry experts told the
Reuters Wealth Management Summit last month.

Citi's wealth management unit in Asia
including Japan managed $288 billion worth of assets at the end of the third
quarter of 2008, down 7 percent from the same period a year ago.

The unit, which includes the private bank
as well as Smith Barney Australia and Citi Nikko Cordial in Japan, earned net income of $59 million in the third quarter, down 58 percent from a year
ago, according to Citi data.